TATA Power to rethink investments if rupee slide continues
Tata Power today declared that their investment plans will be re-looked if the rupee continuous to depreciate at the current rate.
“If the rupee slide continues we will have to go back on drawing board and rethink about our investments,” Anil Sardana, Managing Director, Tata Power said during company’s 94th Annual General Meeting. He also said that the expansion plans of the company largely depend on the Mundra issues (pertaining imported coal prices) because that impacts the cash.
“In the last two quarters, a lot of impairment happened on Mundra project, which was non-cash and therefore one felt that the expansion programs will continue. But in the last quarter, we found that because of the exchange rate we got into cash loss and therefore, we will have to re-look at investment plans,” he said.
He further added that since there was no clarity on the availability of domestic fuel, the company had started to invest in the international market. “I am happy that those projects moved so fast we were surprised ourselves. Within a span of a year, there was progress on the 400 MW hydro projects in Georgia. This progress should give us bullish orientation to invest outside India. However, if the rupee slide-down continues, we will have to rethink about our investment plans.” he said.
He also noted that investments in the 4000 MW Mundra ultra mega power project, which continues to operate, will need more finances than earlier it had made.